OREANDA-NEWS. August 04, 2010. NYMEX crude oil for September delivery rose USD 1.21, or 1.5%, to USD 82.55, the highest settlement since May 4. September Brent crude rose USD 1.86, or 2.3%, to end the session at USD 82.68.

US crude oil futures gained 1.49%, reaching a three-month high above USD 82/bbl on Tuesday, up a fourth session in a row as the dollar weakened broadly, offsetting sluggish economic data.

Buy stops triggered by crude's push above USD 82 also lent support to prices as the market awaited weekly inventory data which are expected to show a drawdown in US crude stockpiles last week. API released weekly inventory data after the markets closed, showing a decline in crude stockpiles, but a less-than-expected 776,000 bbl in the week ended July 30, as imports fell. API also reported that gasoline stocks rose 2.3 mn bbl, with distillate inventories up 1.1 mn bbl. Before this report, the median forecast was expecting a draw of 1.4 mn bbl. Gasoline stockpiles were expected to be down 400,000 bbl, with distillate stocks seen up 1.2 mn bbl. Prices were marginally higher after the API report came out

A declining dollar was yesterday’s main market mover. The US currency fell against the euro, the yen and sterling.

US weekly retail gasoline demand rose 0.7% in the week ended July 30 from a week earlier, according to the SpendingPulse report released on Tuesday by MasterCard Advisors. Over the previous four weeks, demand climbed 2.8% y-o-y.

Tropical Storm Colin formed in the central Atlantic Ocean, the US National Hurricane Center reported on Tuesday. The storm is broadly expected to veer away from the Gulf of Mexico and the Gulf Coast region's energy operations. The NHC also said it was monitoring a tropical wave in the southeastern Caribbean Sea. We do not think there is a storm premium in the offing.

Moving ahead. WTI and Brent were trading lower this morning as the market took a reality check, faced with weaker-than-expected data on US home sales, while factory orders and consumer spending called into question on the strength of the economic recovery. We think prices will retreat slightly from their recent highs today unless some spectacular earnings reports roll in.